ServiceNow’s AI-Driven Pullback Sparks Valuation Debate Among Tech Investors
ServiceNow shares hover NEAR three-year valuation lows at 8.5x forward revenue despite 22% YoY growth, presenting a potential inflection point for growth investors. Cantor Fitzgerald maintains its $240 price target, betting on AI platform adoption and federal contract wins to drive upside.
The stock's 17% retreat from January 2025 highs coincides with crypto markets showing parallel volatility - BTC and ETH remain rangebound while AI-focused tokens like AGI and TAO see increased developer activity. ServiceNow's $1B AI revenue target by 2026 mirrors blockchain projects pivoting to AI/ML integrations.
Notable divergence emerges in valuation approaches: traditional SaaS metrics now contrast with crypto-native projects like FET or RNDR trading at premium multiples despite unproven revenue. This pullback may test institutional conviction in hybrid cloud/AI plays versus pure decentralized alternatives.